Enterprise Ireland-supported companies achieved €11.7 billion in export sales last year an increase of 12.1 per cent on 2005, according to the State agency's annual report.
Enterprise Ireland said its companies generated gross new export sales of €1.69 billion in 2006 and recorded a net increase in employment of 1,261.
Exports from companies in the software, services and emerging sectors grew by 16 per cent to €1.4 billion, the report noted.
Exports in the industrial and lifesciences markets rose by 11.9 per cent to €2.4 billion. Food and retail consumer markets continues to be the State's largest export sector, recording €7.8 billion in sales, up 11.4 per cent on 2005.
The report said northern Europe remained the largest market for client companies, with €6.7 billion in exports, up 10.6 per cent.
The United Kingdom remains the largest export market, and increasef in 2006 by 9.4 per cent to 5.2 Billion, the report said.
The market showing the largest growth in 2006 was Asia which increased 24.1 per cent to €654 million. Exports to the Americas grow by 12.5 per cent to reach €1.29 billion
Chairman of the Board of Enterprise Ireland Pat Molloy said: "A thriving indigenous industry is central to sustaining Ireland's economic growth. Enterprise Ireland's client companies make a very positive contribution to the Irish economy, spending in the order of €16 billion each year on home-sourced goods, services and payroll."
"These Irish companies have a considerable and often understated impact on regional economic development in Ireland" he added.
Enterprise Ireland chief executive officer Frank Ryan said: "The performance in 2006 should encourage Irish entrepreneurs, early stage and growing businesses to take the next steps in developing an internationally competitive business.